Mr. Purcell’s explanation of high Medicare costs are wide off the mark. America’s health care costs lead the world for a very simple reason, we’re the only developed nation that doesn’t carefully limit at least health care prices; some limit total spending as well. We spend about 18 percent of GDP on health care, compared to 8 percent for competitors Japan and Korea, and 4 percent for Singapore. Taking aggressive action aka our competitors would free up at least $1.5 trillion per year, though admittedly, also shatter a few free market shibboleths.
As for Purcell’s complaint about the new tax placed on medical equipment makers, that’s even further off the mark. Look at the gross profit margin rankings for medical instruments and supplies industry on the Internet — No. 1 in size, BioMimetic Therapeutics has gross profit margins of 91.1 percent, and No. 50 Insulet Corporation has 43.8 percent margins.
More than enough to cover a 2.3 percent tax, especially given the increased sales offered by ObamaCare.